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Shortput

SNAP Wheel Strategy Short PutSnapchat is down 25% from its highs, and while it has bounced up a little bit from the highs, it still remains oversold. Now might be the right time to sell a put into weakness and collect premium. Trade Idea: Medium Risk: The 44 Put expiring 4/16 for $1 credit . It has a 81.5% Prob. OTM and if you do get assigned, your cost-basis per share will be $43 and it is a good place to own as you will be in the middle of the volume profile for the last 6 months meaning that you won't be buying at the top but at the same time the bottom. Aggressive: The 47 Put expiring 4/16 for $1.5 credit . It is right below support and has a higher 75% Prob. OTM. While you have a higher chance of getting assigned with this one, considering the support level that hasn't been breached for months, you still have high odds of collecting the premium and not get assigned. Even if you do get assigned, your cost-basis per share will be $45.5. For both of these trade ideas, if you believe in Snapchat's fundamentals, which are pretty modest, you can hold on to the stock and sell covered calls (70-80% OTM) and collect premium until you get assigned. Once you do get assigned, you can come back to selling cash-secured puts again.
NYSE:SNAP
by punitarani
PLTR at support and has high bullish sentimentShort Put : 18-strike expiring 4/16 for $0.69. Short 16 delta and has a 75% POP. It is also very cheap at $400 BPE for a solid 17.5% ROC. This is a neutral to bullish play with a modest room to the downside and still profit from the trade. This will give you the highest possibility to win and the best part is that you don't need to predict the direction as long as it stays above $18. Close this at 50%-75% profit, 150%-200% loss or 20DTE, whichever comes first.
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by punitarani
1
SFIX Short PutSFIX gap down following disappointing earnings and not-so-bright forecast for the next quarter. Same thing happened with INTC twice over the last year and we saw how it was just an over-reactionary sell-off as it quickly rallied up after a continuation sell-off for a week or so. SFIX's fundamentals are solid assuming that shipping problems don't disrupt the business too much. It will most likely close the gap at around 42. It might also pull down a little bit more, but hopefully it won't go below $34. It gives us a decent range from $34-$42 to accumulate the stock. There is also heavy support around the $41.5 area with both a supply/demand zone along with the 200-day SMA. Trade Ideas: Shares: Accumulate between $34-$42 . SL below that if it does continue to fall further, which is unlikely but make sure the SL isn't too close to the bottom support. We should see a push up to $53.75, $65 and $72.5+. Short Put: Medium Risk: 35 Strike for $0.85-$1 Cr. Aggressive: 40 Strike for $1.65 Cr. This can help you reduce your cost basis by at least $0.85 to $1.65 per share if you do get assigned. If you don't get assigned or the stock never dips that low, you get to keep the premium. It also only requires $385/$425 Buying Power which should yield a nice 22%/38% max ROC. In either case, assuming you have at least 1 lot of shares, you can always sell 70%-80% OTM covered calls for more passive income while your stock appreciates.
NASDAQ:SFIXLong
by punitarani
Trade Idea (IRA/Retirement Account): EMB May 21st 103 Short Put.. for a .95/contract credit. Notes: With a current yield of 4.032% (4.381/share annualized) versus a TLT (20 Year + Maturity Treasuries) yield of 1.607%, a play to acquire this emerging market bond fund at a 102.05 break even or below. On a one-lot basis, a bit buying power heavy, so consider acquiring a smaller amount of shares if it ever gets to around this level if short putting isn't an option here. Me personally, just looking to deploy some idle buying power while I wait for an uptick in broad market volatility here in an underlying where, if assigned, I get paid to wait as I reduce cost basis via selling call against. An alternative go-to would be in HYG (current yield 4.676%; 4.142/share annualized), where I could see selling acquisitional puts in the low 80s (e.g., the May 83 short put (68 DTE) is paying .69 here.
NASDAQ:EMB
by NaughtyPines
Opening (IRA): IWM April 23rd 195 Short Put... for a 2.80 credit. Notes: My weekly, 16 delta short put in the expiry nearest 45 days in the broad market exchange-traded fund with the highest 30-day (currently IWM). 1.46% ROC at max as a function of notional risk. 192.20 break even. Alternative Trades: IWM April 23rd 190/195 short put vertical, paying .64 at the mid price, 12.8% ROC at max on buying power of 4.35. RUT April 23rd 1915/1965 short put vertical, paying 6.35 at the mid price, 12.7% ROC at max on buying power of 43.65.
AMEX:IWM
by NaughtyPines
OPENING (IRA): SPY JUNE 21ST 245 SHORT PUT... for a 2.60 credit. Notes: Targeting the short put strike in June paying at least 1% of the strike price in credit (See Post Below). Roll up intraexpiry at 50% max with > 45 days until expiry; pull off on approaching worthless and/or sell call against if assigned. I would note that you will not make squat with this type of setup if you just set and forget it and everything expires worthless, since your ROC %-age is around 1% at max on fill in a cash secured environment. Consequently, you will have to monitor these positions and roll up the short puts at appropriate junctures in order to collect more credit and get a better ROC %-age as a function of notional risk and/or sell call against if assigned. It is also probably better to deploy over time and on red days to take maximal advantage of implied volatility/heightened premium. I'm opting for being somewhat lazy here as I approach retirement, where I value my free time more than my screen time, so am looking for a setup that is minimally invasive of my time, does what I generally need it to do from an ROC %-age perspective, and keeps my buying power engaged and working for me, even if theta decay is slow.
AMEX:SPY
by NaughtyPines